Consumer Incentives for Health and Health Care: An Employer Perspective Andrew Webber, President and CEO National Business Coalition on Health National.

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Presentation transcript:

Consumer Incentives for Health and Health Care: An Employer Perspective Andrew Webber, President and CEO National Business Coalition on Health National Consumer Driven Health Care Summit September 27, 2007

National Business Coalition on Health (NBCH) Our identity: National, non profit association of 65 business and health coalitions, Our vision: Health system reform, through value based purchasing, community by community Our primary mission: To build coalition leadership capacity

Thank You AHRQ!

Business Community Believes in the Power of Incentives But We Are to Blame for a Toxic Payment System that Pays for: Resource use rather than outcomes Individual units of care rather than episodes of illness Acute care not prevention Medical errors and “do overs” With no performance based payment And for a Consumer Entitlement Mentality: That insulates individuals from cost sensitivity because of 3 rd party payment No Business Case for Quality!

Value Based Purchasing: Measure, Report, Reward, Lead Five Pillars: 1. Performance Measurement 2. Transparency and Public Reporting 3. Payment Reform 4. Informed Consumer Choice 5. Purchaser Leadership and Action Accelerating the Pace to the Ultimate Goal: Health and Health Care Improvement

Informed Consumer Choice The Goal: To influence the individual consumer to make informed choices at many levels: to live a healthy lifestyle; to seek preventive services/care when sick; to share in, and make the right, treatment decisions; to comply with treatment regimen and self- manage, particularly chronic disease; to select a plan, hospital, physician.

A Few Examples

General Motors HMO A HMO B HMO C HMO D eValue8 RFI Results Raw Score Flex Score (25) HEDIS / CAHPS (CARS evaluation) Raw Score Flex Score (20) NCQA Accreditation Raw Score Flex Score (5) National Rate Rankings Relationships of rates to Local Indemnity Total Cost Score (50) Total Quality + Cost (100) Commendable 2 Total Quality Score (50) Below Avg Benchmark Strong Good Rating Sample Employee Contribution Accredited $100 $20 $40 $55 Excellent 5 Excellent 5

An Integrated Strategy: HealthMapRx (The Asheville Model) Reinvention of community pharmacy through consumer coaching/counseling With value based benefit design Led by American Pharmacists Association Foundation and NBCH through national distribution agreement 4 member coalitions participating – a dozen more coalitions with expressed interest Demonstrated ROI

Asheville Project Results Over 1500 patients from 10 employers enrolled for diabetes, asthma, hypertension, lipid therapy management, and depression Patients realize improved outcomes & increased medication adherence 50% reduction in sick days Zero workers comp claims in the City diabetes group over 6 years Average net savings of $1,600-$3,200 per person with diabetes each year from year 2 on Employers saved over $5,000,000 in health care costs

The Most Promising Approach

Value Based Benefit Design Basic health insurance benefit architecture should tier medical services by evidence of effectiveness - and providers by evidence of performance Co-pay levels (incentives) should vary by tiers in a way to help steer individuals toward effective services and high performing providers. And vice versa. An alternative to high deductible plans

Some of My Conclusions from Dudley’s Presentation: We need to match incentives to the consumer behavior we’re trying to influence Changing consumer behavior will take a melting pot: timely/actionable information; coaching/counseling; peer/family/employer/community support; and incentives We need more research!